Venture capital is by far the most interesting form of capital — and, along with tech entrepreneurs, venture capitalists are the most interesting sort of capitalists.
Over the past 60-odd years VCs have propelled Silicon Valley to the heart of the world economy. Now they are driving the rise of artificial intelligence and other clever technologies in China. Most capitalists focus on predictable returns. VCs are in the business of betting on the future. If capitalism is about creative destruction, as Joseph Schumpeter argued, then venture capital is creative destruction taken to the nth degree.
How does the venture capital industry work its wonders? Is there a replicable formula for successful VC investing, or is it just a matter of being in the right place at the right time? And how secure is Silicon Valley’s dominance of the industry? Sebastian Mallaby’s absorbing new book, "The Power Law: Venture Capital and the Art of Disruption,” seeks to answer these questions.